If you’re a renter in San Diego, you’ve probably noticed something unusual: rents have been pretty flat lately! According to CoStar, the average rent across the county is $2,491 a month, and it’s only gone up by 0.5% over the last year. Compare that to 2022, when rents skyrocketed by 13%, and it’s clear that things have slowed down significantly.
However, not everyone is benefiting from this slowdown. In more rural areas like Poway, Santee, and Ramona, rents have actually risen by 2.6%. And just because the average is flat doesn’t mean your landlord won’t raise rent, especially if they’ve held off during the recent rent surge.
Overall, though, it’s hard to ignore the cooling trend. The county’s vacancy rate is now 5.2%, the highest it’s been since the early days of the pandemic in 2020. Lucinda Lilley, an expert who works with several property management firms, says many renters are either leaving the state or moving in with roommates because it’s tough to keep up with the cost of living. She also points out that landlords are offering more concessions, like one month free rent, to attract tenants. “We’re becoming a concession-driven market,” she says, with more people willing to sacrifice location and amenities for a better deal.
The rent growth slowdown comes after years of rapid increases, especially during the pandemic. According to Joshua Ohl from CoStar, “In 2022, we basically had three years of rent growth in 12 months.” It was an unsustainable pace, which is why things are starting to level out now.
There’s also been a big boom in apartment construction across the country, which is helping to ease some pressure. In fact, 444,000 new apartments were built last year, hitting a 36-year high.
Still, rent hasn’t gone down much for existing tenants. It’s rare for rent to actually drop. The last time that happened in San Diego County was during the Great Recession in 2009, when rents fell by 2.1%.
If you’re looking for ways to negotiate your rent, some guides suggest bringing rental stats to your landlord and asking for a reasonable reduction. For example, you could say something like, “I love living here and want to stay long-term, but my budget is (fill in the blank). Could we work something out in exchange for a longer lease?”
Area Breakdown and Concessions
Here’s a quick look at how rent breaks down by area and some of the concessions being offered:
- North Shore Cities (Del Mar, Encinitas, Solana Beach): Average rent is $3,537 a month, up 1%. Sola at Pacific Highlands Ranch is offering up to one month free.
- La Jolla/UTC: Average rent is $3,320 a month, up 1.2%. Lux UTC is offering up to two months free on select units.
- Downtown San Diego: Average rent is $3,076 a month, down 1.3%. West on Union Street is offering up to two months free.
- Mission Valley/North Central: Average rent is $2,845 a month, flat year-over-year. Ruby at The Society is offering up to two months free.
- North County (Oceanside, Carlsbad, Vista): Average rent is $2,495 a month, up 0.7%. Alta O’side is offering up to six weeks free.
Other areas like Poway/Santee/Ramona and East County have seen rent increases but are also offering concessions, with some newer buildings giving tenants up to six weeks of free rent.
If you’re renting or thinking about moving soon, it might be worth keeping an eye on these trends and potential deals!
